Can Pinterest Reach $27? 3 Things Must Go Right After Morgan Stanley’s Target Cut

1 hour ago 1

Joel South

Wed, March 25, 2026 astatine 9:42 AM CDT 4 min read

Pinterest (PINS) banal has declined 28.97% year-to-date and 45.98% implicit the past twelvemonth to $18.39, portion Morgan Stanley maintains an Overweight standing with a $27 terms people implying 47% upside. The steadfast lowered FY26 and FY27 adjusted EBITDA estimates by 9% and 13% respectively, citing deeper advertiser scaling challenges driven by ample retail attraction and tariff-driven pullbacks.
Pinterest’s way to betterment depends connected successfully diversifying its advertiser basal beyond ample retailers toward SMBs and mid-market customers, accelerating planetary monetization successful underpenetrated markets, and executing its income translation without disruption.
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Pinterest (NYSE:PINS) has had a brutal stretch. Shares are down astir 30% year-to-date and much than 46% implicit the past year, sitting astatine $18.66 aft cratering from a five-year precocious of $85.53. Over the past month, shares recovered up 6.20% but inactive good beneath wherever astir analysts spot just value. The Street statement clusters astir $23.29. Morgan Stanley, however, holds a much ambitious view.

Following disappointing Q4 results and guidance connected Feb. 12, Morgan Stanley chopped its terms people to $27 from $35 portion maintaining an Overweight rating. That people implies astir 47% upside from the existent price. The steadfast besides lowered its FY26 and FY27 adjusted EBITDA estimates by 9% and 13%, respectively, signaling the advertiser scaling occupation runs deeper than a azygous quarter's miss. But tin PINS realistically scope $27 by extremity of 2026?

Morgan Stanley's thesis centers connected a structural occupation the Q4 numbers lone partially revealed. As CEO Bill Ready acknowledged connected the net call, "Our higher premix of ample retailers comparative to immoderate of our peers has resulted successful america feeling much of an impact" from tariff-driven advertiser pullbacks. The way to $27 hinges connected Pinterest successfully executing its income translation and broadening its advertiser basal beyond ample retail — a process carrying near-term execution risk.

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International monetization acceleration. Rest of World gross grew 64% year-over-year successful Q4, with ARPU successful that portion up 42%. This represents a agelong runway of maturation arsenic Pinterest monetizes its 619 cardinal planetary MAUs successful underpenetrated markets.
SMB and mid-market advertiser expansion. Pinterest has doubled the maturation complaint of its managed SMB business, and SMBs utilizing Performance Plus campaigns amusement a 12% higher monthly gross maturation complaint versus non-adopters. Diversifying distant from ample retail attraction reduces the gross volatility that punished the banal successful Q4.
Free currency travel and buybacks. Pinterest generated $380 cardinal successful escaped currency travel successful Q4 unsocial and $1.252 cardinal for full-year 2025. The institution repurchased $927 cardinal successful shares during FY2025, with Elliott Investment's activistic engagement adding $3.5 cardinal repurchase programme that should enactment per-share worth for semipermanent holders.